Medicaid Insurer Centene To Purchase Health Net
The deal will allow Centene to expand its Medicaid managed care business and also move into the Medicare Advantage market.
The Wall Street Journal:
Centene To Buy Health Net For $6.3 Billion
Centene Corp. on Thursday said it agreed to buy Health Net Inc. in a cash-and-stock deal valued at $6.3 billion, as health insurers increasingly look for tie-ups that can help them cut costs and grow scale. St. Louis-based Centene, a Medicaid-focused health insurer, expects the deal to boost its presence in California and other western states, while allowing for $150 million a year in synergies in the second year after closing. (Dulaney, 7/2)
The Associated Press:
Centene Makes $6.3B Bid For Fellow Insurer Health Net
Centene has jumped into the mix of managed-care companies scrambling to bulk up as the health care overhaul changes their business with a $6.3-billion bid for fellow insurer Health Net. The deal announced Thursday gives St. Louis-based Centene a chance to expand in two hot growth areas for health insurers, the state- and federally-funded Medicaid program for the poor and people with disabilities; and the federally-supported Medicare Advantage program, which has seen its overall enrollment triple over the past decade. (Murphy, 7/2)
USA Today:
Insurance Acquisition: Centene Buying Health Net
The consolidation steamboat that's charging its way through the health care insurance industry added another target as St. Louis-based Centene Corp. agreed to acquire Los Angeles-based Health Net in a deal valued at $6.8 billion. The companies said Thursday that they expect to achieve $150 million in synergies — which typically means cost cuts or savings from improved operations — within two years of the deal's completion. (Bomey, 7/2)
